MUMBAI: Indian stock markets continued their upward momentum on Friday with a positive opening, supported by optimism around the recently announced GST 2.0 reforms.
Investors are hopeful that the new tax rationalisation measures will improve the overall volume of consumption in the economy, driving growth in the coming quarters.
The Nifty 50 index opened at 24,818.85, gaining 84.55 points or 0.34 per cent, while the BSE Sensex surged 294.41 points or 0.36 per cent to open at 81,012.42.
Market experts believe the reforms have the potential to trigger a recovery phase, especially after a period of underperformance in the equity markets.
Banking and market expert Ajay Bagga told ANI, “While industry is welcoming the GST 2.0 reforms and looking forward to higher volumes post implementation from September 22nd, the Indian markets gave up most of their gains by the end of the trading day on Thursday. The advance-decline ratio also pointed to a negative bias with the broader markets ending down. Despite the Indian market’s weakness, we remain convinced that the expectation of a strong consumption boost will move stocks up over the next few weeks. Underperformance for over 12 months helps set a good base for the recovery into the end of the year.”
In the broader market indices, the Nifty 100 was up by 0.33 per cent, the Nifty Smallcap 100 rose 0.20 per cent, while the Nifty Midcap 100 gained 0.31 per cent.
Sectoral indices on the NSE also reflected mixed but largely positive momentum. The Nifty Auto index climbed 0.59 per cent, Nifty FMCG gained 0.13 per cent, and Nifty Realty rose 0.43 per cent.
Nifty PSU Bank also showed strength, up 0.22 per cent. However, the Nifty Metal index edged marginally lower by 0.04 per cent.
On the global front, concerns around US labour market weakness, an expected soft non-farm payrolls report for August, and Trump tariffs being referred to the US Supreme Court are not stopping the S&P 500 from registering record closes. Asian markets also opened higher on Friday.
Japan’s Nikkei 225 gained 0.80 per cent after the country signed a trade deal with the US, which is expected to provide relief to its auto sector.
Taiwan’s Weighted Index jumped over 1 per cent, Singapore’s Straits Times was up 0.15 per cent, Hong Kong’s Hang Seng advanced 0.47 per cent, while South Korea’s KOSPI also traded in the green.
With GST 2.0 reforms in focus and positive cues from global markets, investors are eyeing the coming weeks with optimism, expecting stronger consumption-led momentum to lift Indian equities further. (ANI)
